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Chapter 5.1, Problem 2CC
Summary Introduction

To discuss: The annual percentage rate used as a discount rate.

Introduction:

An annual percentage rate is the amount of simple interest earned in a year without the effect of compounding. This includes the additional fees with the transaction but does not consider compounding.

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Chapter 5 Solutions

Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)

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